Making Informed Financial Decisions (LC 2027) (Leaving Cert Business): Flashcards
📚Flashcards
Practise the cards
10 cards from this deck
ShowHide
Practise the cards
10 cards from this deck
Inflation
Inflation
Gradual loss of purchasing power; prices rise over time
Investment risk principle
Investment risk principle
Higher potential returns typically come with higher risk
ROI (Return on Investment)
ROI (Return on Investment)
Measures the profit returned on an investment
Risk tolerance
Risk tolerance
How much potential loss you're willing to accept investing
MICRO framework (5 risks)
MICRO framework (5 risks)
Market, Inflation, Credit, Regulatory, Operational risks
Fintech
Fintech
Use of technology to deliver financial services & products
Credit rating
Credit rating
Assessment of someone's ability to pay back loans
Most important credit rating factor
Most important credit rating factor
Payment history (35%)
Interest rates
Interest rates
What lenders charge borrowers & savers earn on deposits
Short-term goals (1 yr) suit what investments?
Short-term goals (1 yr) suit what investments?
Low-risk options like savings accounts